Following a review of online services it was announced in Budget 2007 that from 2008 the date by which non-electronic i.e. paper tax returns must be filed was to be set at 31 October following the end of the tax year. After that date filing a paper version of a tax return could incur a late filing penalty, currently £100.
Previously any tax return could be filed by paper version or online, without incurring any penalty, up until 31 January following the tax year end, but for those who wanted HMRC to calculate the tax due the return needed to be filed by 30 September.
HMRC will still offer to calculate the tax due for any paper version of a tax return filed by 31 October
Although HMRC has indicated that it will be raising awareness of the new rules in the coming months, LITRG has asked that HMRC should give a particular focus to the change for those on low incomes who will not have a professional tax adviser to support them.
In particular there will be the pensioners who find that they need to complete tax returns only because the DWP refuse to operate PAYE on their state pension. Although the online system is being made progressively easier to use, many people have neither access to, nor confidence in using such facilities.
Therefore, mark the calendar now for 31 October 2008.
Contact: John Andrews (Tel: 0844 579 6700 Fax 0844 579 6701)